What you need to know about itemised payslipsePayslip2016-02-10T16:01:00+00:00

“Itemised Payslip” is Mandatory From 1 April 2016

Our payslip format is compliant to the MOM’s requirements.

What you need to know about itemised payslips

In the midst of chaos to mandatory requirements for itemised payslips by Singapore MOM, there are a few important points that are not yet really discussed enough. According to the amendments of the Employment Act, employers not only need to ISSUE itemised payslips, but also need to DELIVER the payslips and KEEP the payslips for latest two years for the current employees. Additionally, detailed employment records should be kept. And, with all the concerns about privacy and data protection, keeping employees record is not as simple as it sounds.

More than just issuing itemised payslips.

Below is an extract of requirements from MOM’s website.

Employers must issue itemised payslips to all employees covered by the Employment Act.

When

At least once a month.

Give it together with payment to employee.

If unable to give together, to be given within three working days of payment.

In the case of termination or dismissal, must give payslip together with outstanding salary.

Format

Soft or hard copy (including handwritten).

Employers must keep a record of all payslips issued.

Format

Soft or hard copy, including handwritten.

For how long?

For current employees: Latest two years.

For ex-employees: Last two years, to be kept for one year after the employee leaves employment.

Deliver and keep itemised payslips.

Itemised payslips must be delivered to employees in either soft or hard copy with salary payment or at least in 3 working days. Today, online payslips are popular than before, and payslips can be easily emailed to employees.

But, email delivery has many downsides. Email is not secure. And, delivery cannot be guaranteed and receipt of it cannot be tracked. There are a few examples from HR or employer’s perspective. From employees’ perspective, having sensitive information such as payslips in email box, mostly public free service like Gmail or Outlook is not comfortable, and even though they use securer company email, after they leave the company, they will lose all the data. And, it is also same for the employee self-service portal within company management.

When it comes to a requirement to keep itemised payslips for two years, such problems become more complicated and difficult to solve. Pay information sitting in HR or employers’ laptop can be easily lost, and even worse, can be leaked to who are not authorized to access to the information.

Out there in the market are not many solutions, and ePayslip.com is the best solution to address all those problems. It is not only generating itemised payslips, but also works as an online platform where employees can securely access to their itemised payslips. And, all the itemised payslips are encrypted and stored as long as it is required. And, since it is not an in-house system, employees who left the company can still access to their payslips whenever they need while all other company level information is blocked to access when employees leave the company.

Maintain detailed employment records.

As stated at the beginning of this article, itemised payslip is not all.

In addition, from 1 April 2016, MOM will set up a framework to treat less severe breaches of the EA as “civil breaches” which attract administrative penalties. For a start, the breaches are:

Big enterprises probably have some kinds of HR systems to store and manage HR records, but it is not really familiar and easily accessible solution to SMEs. And, those HRMS are usually very expensive and complicated to implement.

ePayslip.com is running on a simple but powerful enough HRIS(Human Resource Information System), and all necessary key employee information will be stored securely on cloud. HR or employer can easily access and update employee records, and employees can also easily view their own records. In near future, additinal features such as self-onboarding and -offboarding which allows HR works to hire and terminate emplyees more streamlined and hassle free.

Especially, it makes it easier to communicate between HR and terminated employees on ePayslip.com portal without concerns about data security and access level management.

Conclusion.

Now, there are many ways to meet itemised payslips requirements, but most of currently suggested solutions in the market only covers a part of requirements. ePayslip.com can only issue itemised payslips but also deliver and keep the payslips on web securely, and it is accessible at anytime, from anywhere, on any device. And, web-based HRIS bundled with itemised payslip solution can solve another requirements to maintain employee records with industry leading level of data security.

It starts from free option, and it is literally free as long as customers want. Your current software or payroll service provider should be able to generate itemised payroll result and payslips. You don’t need to change them, but just upload their result to ePayslip.com. And, all the rest will work like a magic. You can subscribe the service on your own, or can also let your payroll service providers or accountants talk to ePayslip.com.